(Figure: Demand, Supply Shifts) In the figure, the initialdemand curve is D₁ and the initial supply curve is S₁. If thisdepicts the equilibrium in the market for computer printers,what will happen when the price of computers increases?

Question

Quizplus · Accepted Answer

An increase in the price of computers would increase the demand for computer printers, thus shifting the demand curve to the right. The new demand curve would be D₂, which intersects with the supply curve at a higher equilibrium price and quantity. The supply curve is not affected by the change in price of computers.

(Figure: Demand, Supply Shifts) in the Figure, the Initialdemand Curve